Texas A&M awards contract to privatize services

Texas A&M University is hiring a private company to run its campus dining, landscaping and building maintenance and cleaning services in a deal officials say is worth about $260 million for the school over the next decade.

Texas A&M System Chancellor John Sharp told The Associated Press on Thursday the school is hiring North Carolina-based Compass Group. Sharp says the company will pay Texas A&M $45 million and will spend another $30 million renovating campus dining facilities.

The company has also agreed to keep all university employees in the affected areas in their jobs, Sharp said.

The $260 million figure includes the cash payment as well as the money the school won't have to spend on salaries, benefits and renovations. Sharp says that money can now be put into academics.